Asian shares show mixed performance on Monday
Date
10/21/2024 2:47:17 AM
(MENAFN) Asian shares exhibited a mixed performance on Monday, following the upward momentum in U.S. Stocks that reached record highs to cap off their latest winning week. While U.S. futures showed varied movements, oil prices experienced an increase. Hong Kong's Hang Seng index fell 1.5 percent to 20,869.39, reflecting market concerns, whereas the Shanghai Composite managed a slight gain of 0.2 percent, closing at 3,268.11. Notably, the A-share index in Shenzhen rose by 1.6 percent, highlighting some regional resilience.
In an effort to stimulate economic activity, China announced cuts to its one-year and five-year Loan Prime Rates, which serve as crucial reference points for lending. These lower rates aim to alleviate the financial pressure on borrowers, particularly property developers who have been grappling with restrictions on excessive borrowing implemented in previous years. However, analysts suggested that the positive impact on market sentiment may be short-lived. Zichun Huang of Capital Economics noted that the fundamental issue remains weak demand, indicating that significant government spending will be necessary to drive substantial economic improvement. China's Finance Ministry has indicated plans to increase such expenditures in the coming months, although there are doubts about the sufficiency of fiscal easing to generate more than a modest and temporary boost in economic activity.
In other Asian markets, Tokyo's Nikkei 225 index edged down by 0.1 percent, closing at 38,954.60. Conversely, the Kospi in Seoul advanced by 0.4 percent, reaching 2,604.92, while Australia's S&P/ASX 200 ended the day up by 0.7 percent at 8,344.40, indicating a mixed sentiment across the region.
Oil prices rebounded after a significant decline the previous week, as concerns eased regarding a potential Israeli attack on Iranian oil facilities in response to Iran's missile strike earlier this month. Iran, being a major crude producer, has its exports to China and other markets at stake in such a scenario. However, worries about weak demand from China have also influenced oil prices. Early Monday trading saw U.S. benchmark crude rising by 52 cents to USD69.21 per barrel on the New York Mercantile Exchange, while Brent crude, the international benchmark, increased by 41 cents to USD73.47 per barrel. Additionally, the U.S. dollar strengthened against the Japanese yen, rising to 149.78 yen from 149.57 yen late Friday, amid expectations that the Bank of Japan may adopt a slower approach to interest rate hikes than previously anticipated.
MENAFN21102024000045015839ID1108800769
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.